Budget Proposal Delivers Improved Services, New Capital Projects, But Rate Hike on Utilities

*PORTAGE, MI* — The Portage city council will get their first look at the proposed budget for the next fiscal year, which begins on July 1st, at their Tuesday meeting, according to WKZO.

City Manager Pat McGinnis says a lot of work has already gone into preparing the budget proposal, and no millage hike is planned.

"It will represent improved services, new capital programs, projects, new investments and no increase, so I know that's what city council looks for," McGinnis said.

However, the budget does include a significant increase in water and wastewater rates that will directly impact residents' monthly bills.

Water and Sewer Rates to Increase by Approximately 7%

City council member Chris Burns says there will be another hike in water and wastewater rates proposed. The utilities advisory council has already made that recommendation.

"About an 8.4% increase in the sewer rates and then on the water side around a 5% increase so blend those together what's recommended from staff is about a 7% increase overall," Burns said.

For an average user, that translates to about $5.67 per month in additional water and sewer bills for next year, according to Burns.

No Property Tax Hike

Despite the utility rate increases, the city is not seeking a property tax millage hike. This marks a key component of the budget proposal that city officials say should appeal to residents concerned about taxes.

"If they follow their usual procedure, public work sessions and public hearings will be held on the budget proposal before final approval," Burns said.

What This Means for Residents

The budget proposal represents a trade-off for Portage residents:

  • No increase in property taxes (millage)
  • Improved services and new capital programs
  • New investments in city infrastructure
  • Higher water and sewer bills by approximately 7% overall

The utilities advisory council recommendation comes after reviewing city operations and infrastructure needs. The 8.4% increase in sewer rates and 5% increase in water rates reflect the costs associated with maintaining and improving the city's utility systems.

Residents will have opportunities to provide input on the budget proposal through public work sessions and hearings before the city council makes a final decision on the budget.

The budget proposal will be reviewed at the Tuesday city council meeting, with additional public input sessions likely to follow in the standard budget review process.